They hired the Ohio-based company the Superlative Group and paid them $129,000, but the group was unsuccessful in finding a sponsor.

In July 2016, the city solicited bids again, and of the twelve companies that downloaded and reviewed the materials, none submitted an application, according to the staff report.

The city re-issued the bid in February 2017 and again the next month, before receiving proposals from Anaheim Arena Management and the Superlative Group.

Staff recommended the contract go to Anaheim Arena Management, which has sold naming rights sponsorships for the interior of the Honda Center. The Superlative Group was also asking to keep more revenue from the sponsorship.

Under terms of the one-year contract with Anaheim Arena Management, the city is entitled to a minimum of $80,000 as well as a quarter of any profits above the first $120,000 the company generates in ad revenue.

The city will also get to use the billboards for 10 percent of the advertising time.

Revenue from the contract will go toward paying ARTIC’s $5.7 million annual operating expenses, according to figures from the city’s 2015-16 comprehensive annual financial report.

The city initially planned to pay for the controversial bus and train station, which cost nearly $181 million to build, with a naming rights deal, but it has yet to materialize and ARTIC has operated at a deficit since it opened in 2015.

The City Council Tuesday approved the contract unanimously and without discussion.

Anaheim originally approached Clear Channel Outdoor with a deal that required them to pay the city a minimum of $100,000 each year, but Clear Channel backed out because they did not expect to make that much in revenue, according to a staff report.

The city then lowered that threshold to $80,000, and Anaheim Arena Management was the only company that submitted a bid.

]]>https://voiceofoc.org/2017/03/honda-center-management-company-gets-artic-ad-deal/feed/10Sparks Fly Over Anaheim July 4th Fireworks Saleshttps://voiceofoc.org/2017/03/sparks-fly-over-anaheim-july-4th-fireworks-sales/
https://voiceofoc.org/2017/03/sparks-fly-over-anaheim-july-4th-fireworks-sales/#commentsWed, 15 Mar 2017 04:21:29 +0000https://voiceofoc.org/?p=299717Anaheim could scrap a Fourth of July fireworks program run by the Honda Center for a new sales program where just the city’s eight high schools and eight nonprofits picked in a lottery can participate.

Mayor Tom Tait billed the change as more equitable citywide, but it drew criticism from Anaheim Hills residents.

At their meeting last Tuesday, the City Council voted 4-3 to give Tait’s proposal initial approval, with councilmembers Kris Murray, Lucille Kring and Stephen Faessel voting against it. The council still needs to vote on the details of the program in April.

Under the most recent program, fireworks sales were run by Anaheim Arena Management, the company managing the Honda Center. It sold fireworks from two stands, one at the Honda Center and another in West Anaheim, and proceeds would go toward nonprofits based in Anaheim that register to participate.

Anaheim Arena Management kept 60 percent of the proceeds. Ten percent of the total profits are split among all nonprofits that registered with the program. Customers could also bring a flyer from the nonprofit of their choice to ensure 30 percent of their purchase would go to that organization.

Anaheim Arena Management also donated $40,000 toward a community Fourth of July fireworks show in Anaheim Hills, where residents are prohibited from using their own fireworks because of the high fire hazard in the area.

It’s illegal to sell or set off fireworks that explode, like bottle rockets or cherry bombs. Legal fireworks in California include sparklers and others that create intense heat.

Tait argued the program disproportionately benefited Anaheim Hills residents by ensuring $40,000 goes to the Anaheim Hills fireworks show but “leaves crumbs” for the high schools.

In 2016 the program sold $346,452 worth of fireworks, $53,633 of which went to 99 participating nonprofits, according to a staff report. About $17,000 went to schools in the Anaheim Union High School District, with top earning nonprofits and public school groups like St. Boniface Church netting $2,952 and Katella High Football $2,434.

Instead, Tait’s program will allow 16 nonprofits to run their own fireworks stands. The 16 would include the city’s eight high schools within city limits and eight other organizations selected by a city lottery. Rather than consolidating the sales with one vendor, the individual nonprofits would be required to take care of the logistics of buying, storing and selling fireworks.

He claimed profits under his program will increase and schools will be able to make up to $30,000, because of the use of volunteer labor, the increased number of booths citywide, and a smaller number of participating nonprofits.

Councilwoman Kris Murray disagreed, arguing Tait’s plan shuts out a majority of the city’s nonprofits and will jeopardize the Fourth of July fireworks show, which has been a staple in Anaheim Hills for more than two decades.

“What really frustrates me is we are not six different districts but one city, and this is a program that everyone has access to – all our nonprofits, schools, churches have access to this program with no up-front cost,” Murray said.

She argued the current system allows nonprofits to take advantage of “economies of scale” and consolidate the costs of running a fireworks stand into one big operation.

The March 7 meeting drew several Anaheim Hills residents who were concerned about whether Tait’s plan would affect the fireworks show.

“Since Anaheim Hills is subject to fire hazards the display is especially important to the families in our area,” said Gloria Hale.

Trevor O’Neil, chairman of the Anaheim Hills Community Council that organizes the Fourth of July parade and festivities, said Tait’s plan increases the amount of risk nonprofits must take on, while the previous fireworks program guaranteed nonprofits a certain amount of money, however small.

“Under this plan, it is possible a nonprofit actually loses if their share of the profit isn’t enough to cover these expenses,” O’Neil said.

Tait said that Anaheim Hills residents have been able to raise money to hold the event in the past, before the fireworks program began two years ago. The city has also contributed funding for the event since 1995, which in recent years has been up to $10,000.

Kring said the program has not always been able to fund itself, with one family paying for the entire fireworks show one year.

“As the economy got worse, our parades were very lean and mean, it was almost embarrassing,” Kring said.

She said that even if schools in Anaheim Hills had a fireworks stand, residents in the area would not be able to light them.

Councilman Steve Faessel said the program with the Honda Center is not perfect, but he is concerned about the large number of organizations who will not be able to participate.

“That leaves approximately 80 organizations that aren’t going to get any funding at all,” Faessel said. “I’m uncomfortable for giving all the benefit to 16 at the expense of the other 80.”

Tensions between Tait and Murray flared when she challenged whether Tait’s program would generate as much money for nonprofits as he claimed.

“These are huge money makers for high schools. The numbers you’re talking about are a fraction of what the high schools would make” in other cities, Tait said.

“The numbers don’t back that up, sir,” Murray responded.

“We tried your way twice and it failed miserably – and that’s not just me, it’s the Orange County Register,” Tait replied, referring to an Orange County Register editorial calling the previous fireworks program a “dud.”

Murray noted more than 200 residents sent emails and letters to the City Council about the fireworks show.

“I’ve never had this many individual constituents saying, ‘this is important, please don’t throw it out,’” Murray said.

Murray’s campaign Facebook page called on residents to contact their councilmembers to “protect” the Fourth of July celebration.

“It looks very political, and I’m just going to say it. This is political,” Tait said.

“I’m encouraging residents to reach out to elected officials and they have every right to do so,” Murray responded, with Tait gaveling her down.

In 2014, the Chamber of Commerce received $40,000 to administer and organize the fireworks show. Now that money goes to the Anaheim Hills Community Council, which hires the Chamber to help staff and organize the event, O’Neil said.

Councilman Jose Moreno, who originally requested changes be made to the fireworks sales program, said he wasn’t trying to get rid of the fireworks show but “democratize” a program he characterized as benefiting the Chamber of Commerce and Anaheim Hills, leaving other residents with the short end of the stick.

“The chair of the Chamber of Commerce was chair of the charter commission that pushed our voters to vote for fireworks and exempted the Hills, rightfully so, but then found a way to get $40,000 to the Hills,” Moreno said.

A more detailed proposal of the new fireworks program will need to come before the City Council for approval again before it is final.

Correction: A previous version of this article incorrectly stated that $93,633 from fireworks sales went to 99 participating nonprofits. $53,633 went toward the nonprofits, while $40,000 went toward the Anaheim Hills fireworks show.

]]>https://voiceofoc.org/2017/03/sparks-fly-over-anaheim-july-4th-fireworks-sales/feed/4Honda Center Union Suing Over Lack of Job Offershttps://voiceofoc.org/2013/08/honda-center-union-suing-over-lack-of-job-offers/
Mon, 30 Nov -0001 00:00:00 +0000https://voiceofoc.org/honda-center-union-suing-over-lack-of-job-offers/The suit claims Anaheim Arena Management violated a new state law by not offering to rehire workers the firm laid off in June.]]>The union for more than 400 laid-off Honda Center employees announced Tuesday that it is suing Anaheim Arena Management for not offering to rehire them, alleging that stadium management violated a new state law on worker retention.

The food service employees were laid off at the end of June after management for the city-owned arena decided not to renew its contract with their concession operator, Aramark Corp., in order to bring the service in-house.

Anaheim Arena Management has said that its decision to manage its own concessions will increase its flexibility and improve service for customers. However, the union, Unite Here Local 11, says the move is unfair to the workers, many of whom have worked at the arena for over a decade.

Since the layoff, the company has hired hundreds of replacement workers, but only some are former Aramark employees.

The lawsuit alleges that by failing to offer the Aramark employees the opportunity to keep their jobs, Arena Management violated a new state law, signed by Gov. Jerry Brown in late June, that requires public arenas like the Honda Center to retain laid-off workers for an additional 60 days and offer them jobs if their work is satisfactory.

The lawsuit follows calls on the Anaheim City Council by both the union and former arena employees to support their rehiring. The City Council has authority over the arena’s contract.

Because the arena falls within the city’s enterprise zone, the Honda Center would have also qualified for a job creation tax credit, a benefit which Anaheim Arena Management has said it never planned to seek.

Correction: Due to an editing error, this story incorrectly stated that the union maintains that the layoff was done simply so the company could hire cheaper workers. The union generally maintains that the move is unfair but is not attaching motives to it.

Documents

]]>Councilman: Honda Center Employees Should Be Rehiredhttps://voiceofoc.org/2013/05/councilman-honda-center-employees-should-be-rehired/
Mon, 30 Nov -0001 00:00:00 +0000https://voiceofoc.org/councilman-honda-center-employees-should-be-rehired/Jordan Brandman announced he wrote to management requesting priority for the more than 400 arena employees who received layoff notices.
]]>Anaheim City Councilman Jordan Brandman has written a letter to Honda Center management asking that the more than 400 employees who are losing their jobs next month receive priority hiring as food and beverage services are moved in-house, among other requests.

At Tuesday night’s council meeting, Brandman read into the record his letter addressed to Anaheim Arena Management CEO Tim Ryan. Its other requests include a meeting among Brandman, the arena employees union representatives and Honda Center management, and allowing the new employees to use “card check,” whereby a union is formed when a majority of employees sign forms stating their desire to unionize.

Brandman’s letter requests a response from Ryan by Friday.

“I believe it would be productive for Anaheim Arena Management to consider hiring all existing Aramark employees for an evaluation period,” Brandman read from his letter.

Brandman’s letter is the first time a city leader has publicly entered the controversy over the layoffs.

The employees provide food and beverage services to the venue, which is home for the Anaheim Ducks of the National Hockey League. The employees received notice last month that they would be laid off effective June 30. The arena’s management is bringing in-house its food and beverage services now provided by Aramark, and employees fear they will either not be rehired or be rehired at lower wages.

Suspicions grew over the arena management’s decision when Voice of OC reported that the layoffs make the company eligible for potentially millions of dollars in tax credits under the city’s enterprise zone program, which rewards companies that hire new employees who meet certain criteria.

After the article, the state’s enterprise zone advocacy group announced that it would lobby to close the apparent loophole that allows companies to collect tax credits by firing one group of people and hiring another. The arena’s management declared that it never intended to pursue the tax credits.

Employees and labor leaders in recent months have at protests and council meetings repeatedly called on council members to intervene, arguing that city leaders could pressure the arena’s management because the city owns the facility.

At the Orange County Labor Day dinner, Brandman was confronted by Ada Briceno, secretary-treasurer of Unite Here Local 11, which represents arena employees, and by Jose Moreno, president of the grassroots Latino group Los Amigos of Orange County. They asked Brandman, the only Democrat on the council, to help the employees.

“Apparently this is his reaction to the outpouring of support for the Honda Center workers from the community,” said Unite Here Local 11 spokesman Hal Weiss. “We’re certainly happy to see that he’s standing up for the workers of the Honda Center, and we expect that Tim Ryan will respond as Mr. Brandman requested.”

]]>Honda Center Layoffs Could Mean Tax Credits for Firmhttps://voiceofoc.org/2013/05/honda-center-layoffs-could-mean-tax-credits-for-firm/
Mon, 30 Nov -0001 00:00:00 +0000https://voiceofoc.org/honda-center-layoffs-could-mean-tax-credits-for-firm/Because the arena is in an enterprise zone, Anaheim Arena Management could reap millions in tax credits when it replaces more than 400 employees it is laying off.
]]>By following through with plans to lay off more than 400 food service workers and then replace them, the Honda Center’s management company will qualify for job creation tax credits that could be worth millions of dollars, according to Anaheim city officials.

The company, Anaheim Arena Management, can take advantage of the state tax break because it is within the city’s enterprise zone, a state program designed to spur investment and job growth in economically depressed areas.

Last week, the workers were given notice, effective June 30, that they will lose their jobs when the company ends its contract with Aramark, the Honda Center’s longtime food service concessionaire.

On Tuesday, the company announced it will hire 500 new workers for food jobs at the city-owned arena, which is home to the National Hockey League’s Anaheim Ducks.

The city has authority over the enterprise zone and has contracted with the Anaheim Chamber of Commerce to administer it.

At Tuesday’s City Council meeting, city officials confirmed that the new hires — as long as they meet certain criteria such as being a veteran or a resident of certain neighborhoods in the city — would qualify the company for a tax credit worth up to $37,000 per employee over five years.

Based on the formula, the credit could be worth millions to the company, given how many workers it is hiring.

“The Honda Center is within the enterprise zone, and there is nothing that we’ve been able to identify that would make them ineligible for tax credits if they were to hire eligible employees through the termination of the contract with Aramark,” said city Planning Director Sherry Vander Dussen in response to a question by Councilwoman Gail Eastman.

The workers’ union on Wednesday called the move “absolutely shameful.”

“Make no mistake, this is an attempt by Anaheim Arena Management to undercut workers’ rights, reduce wages and cut benefits,” said Ada Briseno, secretary-treasurer of Unite Here Local 11. “And because the Honda Center is in an enterprise zone, they will receive millions in tax breaks for firing the workers and hiring replacements. It is corporate welfare at its worst, and taxpayers will foot the bill.”

Anaheim Arena Management didn’t return a call seeking comment.

According to the union, for weeks arena management refused to meet with workers or explain whether they’ll keep their jobs. That prompted an outcry from the workers, who lobbied Anaheim Ducks fans directly for support.

“Most rigorous research has found that EZs do not create a net increase in jobs or increase the rate of job creation,” the state legislative analyst’s office stated this year. “Because they are expensive and not shown to be effective, we recommend that the area programs be eliminated.”

Meanwhile, supporters of the zones argue that they’re well worth the cost.

You can reach Nick Gerda at ngerda@gmail.com, and follow him on Twitter: @nicholasgerda.

]]>Anaheim Council Approves Bond Deal for Basketball Teamhttps://voiceofoc.org/2011/03/anaheim-council-approves-bond-deal-for-basketball-team/
Wed, 30 Mar 2011 11:39:00 +0000https://voiceofoc.org/anaheim-council-approves-bond-deal-for-basketball-team/Council voted unanimously to issue $75 million in bonds to
billionaire Henry Samuelli so he can bring the NBA's Sacramento
Kings to the Honda Center.
]]>Tuesday, March 29, 2011 |The Anaheim City Council voted unanimously and with almost no discussion Tuesday night to issue $75 million in bonds to billionaire Henry Samueli so he can bring the Sacramento Kings basketball team to the Honda Center.

It’s now up to the National Basketball Association to approve or reject the deal.

“There’s no risk to the city,” Mayor Tom Tait repeated over and over. “There’s no risk whatsoever to the city.”

One other thing: The new team’s name will include the word Anaheim and only Anaheim when it comes to describing location. Legal documents specifically were drafted to preclude a repeat of the Los Angeles Angels of Anaheim fiasco.

“We had criteria,” Tait told a phalanx of television and other reporters from Sacramento, Los Angeles and local outlets at a news after the meeting. “No risk to the taxpayer money and no city money … and the name shall be Anaheim.”

Samueli, the co-founder of the Irvine-based Broadcom, did not attend the council meeting

The action came in the middle of a financial drama as Sacramento city officials, said they’re fine with the move as long as the Kings pay off a $77 million loan it owes the city.

Sacramento Mayor Kevin Johnson, according to the Sacramento Bee, said the Maloof family, which owns the team, assured the city the loan would be repaid. City officials are asking for it in writing.

“I think the mindset of the city is to make sure that they fulfill their obligation,” the mayor told the Sacramento Bee.

“And if they do that, then I don’t want a messy divorce, I don’t want to be a poor sport about it, it’s their decision. And quite frankly, if they don’t want to be here, then I’m going to be OK with (them moving) and I think our community will be OK with that.”

Terms of the Deal

Under the proposal approved by the council, three companies, all owned by Samueli, will buy up to $75 million in city bonds.

The city will receive the money from the Samueli firms — somewhat like an escrow company, as Tait put it — and turn around and give the money to another Samueli company, Anaheim Arena Management, LLC (AAM), which manages the city-owned Honda Center.

The $75 million will be used to make up to $25 million worth of improvements to the Honda Center and $50 million for other expenses, possibly including a relocation fee the Kings would pay to the NBA.

Samueli, who also owns the Anaheim Ducks hockey team, will be repaid from revenue generated by the sports teams and other events at the Honda Center.

The center was built in 1993 and currently has about $36 million in outstanding debt on bonds that were issued in 2003. Those bonds also are being repaid with arena revenue at a rate of about $5.5 million a year. They will be paid off in 2023.

City officials said they didn’t know how much revenue the Honda Center generates each year but the new bonds must be paid off in 10 years. The city won’t receive any revenue from the Honda Center until the new bonds are paid off.

As part of the new bond package, Samueli’s company contract to manage the Honda Center will be extended another 10 years to 2033 and his firm has the right to additional extensions through 2053.

The new bond sale was supported by the Anaheim Chamber of Commerce. City officials and civic leaders said payroll, ticket sales and other consumer spending associated with professional basketball teams has meant more than $180 million a year in local revenue to other cities.

But William D. Fitzgerald with the watchdog group Anaheim HOME (Home Owners Maintaining their Environment) reminded the council of previous ventures that didn’t work out financially as hoped, including the Anaheim Rams’ football team move to St. Louis.

And in Sacramento, Assistant City Manager John Dangberg sent Anaheim City Manager Tom Wood a letter Monday saying Anaheim’s enticement of the Kings could cause Sacramento “irreparable harm.”

The Kings have until April 18 to file a notice of relocation with the NBA, according to multiple news accounts.

Like much of the Central Valley, Sacramento suffers from an unemployment rate of more than 12 percent due to the Great Recession and loss of the Kings could mean further economic damage.

If Anaheim goes ahead with its plan, Dangberg urged the city to require the Kings to make repayment of the $77 million to Sacamento a condition before relocating to Anaheim.